The calculations below outline how an intrinsic value for
Aldridge Minerals
is arrived at by discounting future cash flows to their present value using the 2 stage method. We use
analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

The current share price of
Aldridge Minerals
is above its future cash flow value.

Often investors are willing to pay a
premium
for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
Aldridge Minerals's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
Aldridge Minerals's earnings available for a low price, and how does
this compare to other companies in the same industry?

Future Performance

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aldridge Minerals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.

Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
it right!

34.2%

Expected Metals and Mining industry annual growth in earnings.

Earnings growth vs Low Risk Savings

Is
Aldridge Minerals
expected to grow at an
attractive
rate?

Unable to compare Aldridge Minerals's earnings growth to the low risk savings rate as no estimate data is available.

Growth vs Market Checks

Unable to compare Aldridge Minerals's earnings growth to the Canada market average as no estimate data is available.

Unable to compare Aldridge Minerals's revenue growth to the Canada market average as no estimate data is available.

High Growth Checks

Unable to determine if Aldridge Minerals is high growth as no earnings estimate data is available.

Unable to determine if Aldridge Minerals is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
Aldridge Minerals's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Aldridge Minerals
has a total score of
0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Health

A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).

The boxes below represent the relative size of what makes up
Aldridge Minerals's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Aldridge Minerals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Aldridge Minerals's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of
Aldridge Minerals's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

HanIlhan

COMPENSATION

$417,481

TENURE AS CEO

4.7 years

CEO Bio

Mr. Han Ilhan, MS, P.Eng., has been the Chief Executive Officer and President of Aldridge Minerals Inc. since April 7, 2014. Mr. Ilhan served as Vice President of Projects at Alamos Gold Inc. since October 17, 2011 and its Country Manager of Turkey Operations. He served as the Vice President and Director of Global Mining Business at URS, where he provided engineering and environmental services to the mining industry in over 20 countries. His experience includes project identification, evaluation, planning and development, with a strong emphasis on environmental risk minimization and sustainable development. Additionally, as a part of project evaluations and risk management studies, he has interacted with various stakeholder groups, in addition to technical auditing and due diligence of operating and closed facilities. Mr. Ilhan's specific technical expertise in the mining industry includes engineering, environmental, social risk management and technical planning in the design and construction of heap leach facilities, water supply and diversion systems, pollution prevention measures, waste storage facilities and mine closure and reclamation projects. He has composed numerous engineering and environmental publications and is a distinguished speaker for various high-level mining industry conferences. Mr. Ilhan is a professional engineer and earned his Bachelor of Civil Engineering from Bogazici University in Istanbul, Turkey and Master of Geotechnical Engineering at Oregon State University.

CEO Compensation

Han's compensation has increased whilst company is loss making.

Han's remuneration is higher than average for companies of similar size in Canada.

Management Team Tenure

Average tenure of the
Aldridge Minerals
management team in years:

4.7

Average Tenure

The tenure for the Aldridge Minerals management team is about average.

Management Team

Han Ilhan

TITLE

President & CEO

COMPENSATION

$417K

TENURE

4.7 yrs

Jim O'Neill

TITLE

CFO & Corporate Secretary

COMPENSATION

$171K

TENURE

7.5 yrs

Serdar Akca

TITLE

VP & Country Manager

COMPENSATION

$184K

AGE

53

TENURE

14.9 yrs

Jaymes Dircks

TITLE

Vice President of EPC

COMPENSATION

$297K

TENURE

1 yrs

Ahmet Sentürk

TITLE

VP of Exploration & Yenipazar Branch Manager

COMPENSATION

$118K

TENURE

1 yrs

Oya Misirdali

TITLE

Vice President of Finance

Zafir Ekmekçi

TITLE

Consultant of Flotation

Board of Directors Tenure

Average tenure of the
Aldridge Minerals
board of directors in years:

5.6

Average Tenure

The tenure for the Aldridge Minerals board of directors is about average.

News

External News

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Simply Wall St News

What Kind Of Risk Should You Expect For Aldridge Minerals Inc (CVE:AGM)?

If you are a shareholder in Aldridge Minerals Inc’s (CVE:AGM), or are thinking about investing in the company, knowing how it contributes to the risk and reward profile of your portfolio is important. … The first risk to consider is company-specific, which can be diversified away when you invest in other companies in the same industry as AGM, because it is rare that an entire industry collapses at once. … The second risk is market-wide, which arises from investing in the stock market.

Who Are Aldridge Minerals Inc's (CVE:AGM) Major Shareholders?

With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Private Company Ownership Potential investors in AGM should also look at another important group of investors: private companies, with a stake of 34.34%, who are primarily invested because of strategic and capital gain interests. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Aldridge Minerals Inc (CVE:AGM): What Does It Mean For Your Portfolio?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … According to this value of beta, AGM may be a stock for investors with a portfolio mainly made up of low-beta stocks. … I test AGM’s ratio of fixed assets to total assets in order to determine how high the risk is associated with this type of constraint.

Are Aldridge Minerals Inc's (CVE:AGM) Interest Costs Too High?

With this growth in debt, the current cash and short-term investment levels stands at $4.3M , ready to deploy into the business. … Looking at AGM’s most recent $1.2M liabilities, the company has been able to meet these commitments with a current assets level of $5.3M, leading to a 4.55x current account ratio. … AGM's large debt ratio on top of low cash coverage of debt in addition to low liquidity coverage of near-term obligations may send potential investors running the other way.

Company Info

Map

Description

Aldridge Minerals Inc., a development stage mining company, engages in the development and exploration of mineral properties in Turkey. Its principal property is the Yenipazar Project, a gold-silver-copper-lead-zinc mineral deposit, which covers an area of 100 square kilometers and is located to the east-southeast of Ankara. The company was incorporated in 1994 and is headquartered in Toronto, Canada.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.